THE TOP 3 REASONS TO DO A LEAST A HOMETAR 6 (AND HOW IT HELPS YOU GET AN AFFORDABLE HOME)
As an Architectural Designer and Homestar Professional, this is why I recommend doing Homestar. Our homes are biggest financial investment or the largest financial liability we make in our lifetimes. Most people don’t want a grand design, they want a healthy comfortable and affordable place to call home for their family. So here is how Homestar and great Architectural design can help you achieve that.
Homestar is a voluntary rating tool created by the New Zealand Green Building Council. It has a sliding scale of rating levels that range from good standard above the minimum offered by our New Zealand Building Code through to world class.
It offers new homeowners improved quality of the health and comfort of their homes but also unlocks better lending criteria and lower monthly bills. This is why you should seriously consider Homestar for your new home.
What is Homestar?
Homestar starts at a level above our New Zealand Building code and in addition considers, recognises and rewards innovation and improvements in on site ecology and stormwater management, occupant experience and sustainable amenities, waste consideration both during construction and occupation, low carbon materials in the design and construction, water use and human comfort and health in the design. This also flows into energy use rates which impact on power bills.
And Homestar is not a one size must fit all, it can be applied to stand alone homes, terrace homes, apartments and even commercial buildings that have accommodation, like assisted living apartments in retirement or health complexes.
It also serves to sit between world standards and aspirations and just above the minimum standard level most homes in New Zealand that being created adhere to.
It requires the design to be evaluated and rated and a built rating achieved by using evidence to prove a rating. Similar to your project getting Building Consent at the design stage and Certificate of Code Compliance at the end of the construction.
So, there is a band of ratings called star ratings that recognise the level of improvement a design has. These star ratings is achieved by totalling the number of credits a project achieves with certain credits having mandatory minimums to guarantee quality and integrity of the system.
The True Cost
So lets crunch the numbers of a base build cost relative to a Homestar 6.
Base on mortgage term of 30 years at 6%. Includes Healthy Homes interest reduction for Homestar rated homes.
Base Minimum Code Compliant Build - Mortgage term 30 years at 6% interest
60m2 dwelling at $4K/m2 = $240,000
$ 1,430 monthly repayments
Homestar 6 version of this design - 6% - 0.7% (ANZ healthy home interest reduction for Homestar) = 5.3% for 30 year term
Base Build cost $240,00 x 2% (for Homestar 6 upgrade) and $5K certification cost allowance = $ 249,800
6% - 0.7% (ANZ healthy home interest reduction for Homestar) = 5.3%
$ 1,388 monthly repayments
If we only consider the capital cost and not the quality of the build or the smart investment opportunities that unlocks, we are stuck in an old story creating the same problem.
2. Savings in Power Bills
As you increase the Homestar rating, the amount of energy each star rating can use as a maximum reduces. So lets look at potential power savings for various versions of the same design, so we are comparing apples with apples. Considering a power rate of 30 cents a Kwh as an average for simplicity. (insert graphs from energy use)
Using the formula:
Average Monthly power bills = Design power use x area x cost of kWh / 12
Code Minimum Design monthly power bills
173.8 kWh/m2/year x 60m2 x $0.30 /12= $260.70
Homestar 6
92 kWh/m2/year x 60m2 x $0.30 /12 = $138
Now what does it look like for Homestar 8, is the leap worth it
51 kWh/m2/year x 60m2 x $0.30 /12 = $76.50
Homestar 10
33 kWh/m2/year x 60m2 x $0.30 /12 = $49.50
3. Speed to pay off your mortgage
If we decided to take the power savings you make from a Homestar 6 power use and added it to your mortgage, how much faster could you pay off the home loan on this 60m2 design?
Capital amount $249,800
Interest rate 5.3%
Monthly repayments for 30 year term - $ 1,388 ($48 cheaper than a minimum code compliant home)
Power savings from Code Compliant to Homestar 6
$260.70 - $138 = $122.70
Monthly repayments increased to $1,510.70
Time to repay loan shortened by 62 months with a savings on interest of $49,914 over term of the loan
Suddenly the 2% construction cost has just paid for itself. Worth considering right?
